WallStSmart

DraftKings Inc (DKNG)vsTesla Inc (TSLA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Tesla Inc generates 1456% more annual revenue ($97.88B vs $6.29B). TSLA leads profitability with a 4.0% profit margin vs 0.9%. DKNG appears more attractively valued with a PEG of 0.10. DKNG earns a higher WallStSmart Score of 59/100 (C).

DKNG

Buy

59

out of 100

Grade: C

Growth: 9.3Profit: 4.5Value: 7.3Quality: 3.5
Piotroski: 5/9Altman Z: -0.52

TSLA

Avoid

33

out of 100

Grade: F

Growth: 6.7Profit: 4.0Value: 2.0Quality: 7.0
Piotroski: 3/9Altman Z: 2.45
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DKNGUndervalued (+62.6%)

Margin of Safety

+62.6%

Fair Value

$70.36

Current Price

$23.72

$46.64 discount

UndervaluedFair: $70.36Overvalued
TSLASignificantly Overvalued (-18.9%)

Margin of Safety

-18.9%

Fair Value

$258.56

Current Price

$308.85

$50.29 premium

UndervaluedFair: $258.56Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DKNG3 strengths · Avg: 9.3/10
PEG RatioValuation
0.1010/10

Growing faster than its price suggests

EPS GrowthGrowth
184.6%10/10

Earnings expanding 184.6% YoY

Revenue GrowthGrowth
16.8%8/10

16.8% revenue growth

TSLA3 strengths · Avg: 9.0/10
Market CapQuality
$1.40T10/10

Mega-cap, among the largest globally

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
15.8%8/10

15.8% revenue growth

Areas to Watch

DKNG4 concerns · Avg: 3.0/10
Price/BookValuation
19.4x4/10

Trading at 19.4x book value

Profit MarginProfitability
0.9%3/10

0.9% margin — thin

Operating MarginProfitability
0.3%3/10

Operating margin of 0.3%

P/E RatioValuation
277.1x2/10

Premium valuation, high expectations priced in

TSLA4 concerns · Avg: 3.3/10
Price/BookValuation
13.8x4/10

Trading at 13.8x book value

Return on EquityProfitability
4.4%3/10

ROE of 4.4% — below average capital efficiency

Profit MarginProfitability
4.0%3/10

4.0% margin — thin

Operating MarginProfitability
4.2%3/10

Operating margin of 4.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : DKNG

The strongest argument for DKNG centers on PEG Ratio, EPS Growth, Revenue Growth. Revenue growth of 16.8% demonstrates continued momentum. PEG of 0.10 suggests the stock is reasonably priced for its growth.

Bull Case : TSLA

The strongest argument for TSLA centers on Market Cap, Debt/Equity, Revenue Growth. Revenue growth of 15.8% demonstrates continued momentum.

Bear Case : DKNG

The primary concerns for DKNG are Price/Book, Profit Margin, Operating Margin. A P/E of 277.1x leaves little room for execution misses. Debt-to-equity of 3.17 is elevated, increasing financial risk.

Bear Case : TSLA

The primary concerns for TSLA are Price/Book, Return on Equity, Profit Margin. A P/E of 346.3x leaves little room for execution misses. Thin 4.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

TSLA carries more volatility with a beta of 1.80 — expect wider price swings.

DKNG is growing revenue faster at 16.8% — sustainability is the question.

DKNG generates stronger free cash flow (-56M), providing more financial flexibility.

Monitor GAMBLING industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DKNG scores higher overall (59/100 vs 33/100) and 16.8% revenue growth. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

DraftKings Inc

CONSUMER CYCLICAL · GAMBLING · USA

DraftKings Inc. is a digital sports entertainment and games company in the United States. The company is headquartered in Boston, Massachusetts.

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Tesla Inc

CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA

Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. Tesla's current products include electric cars, battery energy storage from home to grid-scale, solar panels and solar roof tiles, as well as other related products and services. In 2020, Tesla had the highest sales in the plug-in and battery electric passenger car segments, capturing 16% of the plug-in market (which includes plug-in hybrids) and 23% of the battery-electric (purely electric) market. Through its subsidiary Tesla Energy, the company develops and is a major installer of solar photovoltaic energy generation systems in the United States. Tesla Energy is also one of the largest global suppliers of battery energy storage systems, with 3 GWh of battery storage supplied in 2020.

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